Correlation Between Dagi Yatirim and Cuhadaroglu Metal
Can any of the company-specific risk be diversified away by investing in both Dagi Yatirim and Cuhadaroglu Metal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dagi Yatirim and Cuhadaroglu Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dagi Yatirim Holding and Cuhadaroglu Metal Sanayi, you can compare the effects of market volatilities on Dagi Yatirim and Cuhadaroglu Metal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dagi Yatirim with a short position of Cuhadaroglu Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dagi Yatirim and Cuhadaroglu Metal.
Diversification Opportunities for Dagi Yatirim and Cuhadaroglu Metal
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dagi and Cuhadaroglu is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dagi Yatirim Holding and Cuhadaroglu Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuhadaroglu Metal Sanayi and Dagi Yatirim is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dagi Yatirim Holding are associated (or correlated) with Cuhadaroglu Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuhadaroglu Metal Sanayi has no effect on the direction of Dagi Yatirim i.e., Dagi Yatirim and Cuhadaroglu Metal go up and down completely randomly.
Pair Corralation between Dagi Yatirim and Cuhadaroglu Metal
Assuming the 90 days trading horizon Dagi Yatirim Holding is expected to generate 1.15 times more return on investment than Cuhadaroglu Metal. However, Dagi Yatirim is 1.15 times more volatile than Cuhadaroglu Metal Sanayi. It trades about 0.11 of its potential returns per unit of risk. Cuhadaroglu Metal Sanayi is currently generating about -0.22 per unit of risk. If you would invest 1,520 in Dagi Yatirim Holding on October 22, 2024 and sell it today you would earn a total of 72.00 from holding Dagi Yatirim Holding or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dagi Yatirim Holding vs. Cuhadaroglu Metal Sanayi
Performance |
| Timeline |
| Dagi Yatirim Holding |
| Cuhadaroglu Metal Sanayi |
Dagi Yatirim and Cuhadaroglu Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dagi Yatirim and Cuhadaroglu Metal
The main advantage of trading using opposite Dagi Yatirim and Cuhadaroglu Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dagi Yatirim position performs unexpectedly, Cuhadaroglu Metal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cuhadaroglu Metal will offset losses from the drop in Cuhadaroglu Metal's long position.| Dagi Yatirim vs. Cuhadaroglu Metal Sanayi | Dagi Yatirim vs. KOC METALURJI | Dagi Yatirim vs. Gentas Genel Metal | Dagi Yatirim vs. MEGA METAL |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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